CBS MarketWatch columnist Chuck Jaffe recently wrote about some important things to keep in mind when thinking about applying for a zero-interest credit card.
• Required card use
Many of the zero-interest deals come with a catch: You must use the card at least once a month, possibly for a minimum transaction amount. Failure to make the transaction or to reach the trade amount may result in fees, penalties, or the imposition of a new, higher rate. To make matters worse, your payments apply to any new purchases you make on the card only after you pay off the transferred balance
• Punitive rates may apply when things go wrong
Credit card companies reportedly make one-third of their money from fees, with interest rates going from near-zero to upward of 20% if something goes wrong. Although you may not expect to have any problems, you should not agree to a card deal without knowing exactly what could happen in a worst-case scenario.
|
 |
|
• A universal default clause that affects all of your consumer debts
If you are a day late on any payment to any creditor, the lender puts you into a default rate. You could be paying your credit card bill on time each month, but if your water bill gets lost in the mail, you could get slapped with a default rate that in some cases rises to nearly 30% per year.
Your best bet is to stick with a consistent low-rate card, like the ones offered at Pacific Advantage FCU. Here you can choose from either our Classic Visa Credit Card at a fixed rate of 11.4% APR* or our Platinum Visa Credit Card at a fixed rate of 9.4% APR*. Tailor a credit package for your specific purchasing needs and take advantage of the benefits and add-on services provided by our Visa programs. For more information, please click here or contact our office at 1-800-444-5504.
* APR = Annual Percentage Rate
